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Motorola rises on promising results

SCHAUMBURG, Illinois, United States-Shares of Motorola rose slightly after the company reported promising second-quarter results. Discounting charges of nearly US$3.5 billion taken during the second quarter, Motorola said it had earnings of US$48 million for the three months ended 29 June.

Including the charges, Motorola reported a loss of US$2.32 billion for the quarter compared with a loss of US$759 million for second-quarter 2001.

The company recorded sales of US$6.7 billion, a decrease from sales of US$7.5 billion for the same period last year.

The Personal Communications Segment, which manufactures mobile phones, experienced US$2.6 billion in sales, a 5-percent increase from second-quarter 2001. Motorola also said the segment’s market share is at 18 percent, up from 17 percent in the first quarter.

“Motorola continues to increase its substantial financial flexibility,” said Christopher Galvin, chairman and chief executive officer (CEO) of Motorola. “At the end of the quarter, we had approximately US$6.5 billion in cash, cash equivalents and short-term investments, up about US$500 million during the quarter. We also had US$1.5 billion in short-term debt, of which about US$500 million was in commercial paper. In the quarter, capital expenditures were US$136 million, compared with depreciation of US$514 million.”

Motorola said it expects sales in the third quarter to be approximately US$6.7 billion, and sales in the fourth quarter to total approximately US$7.5 billion. By comparison, sales from ongoing operations in the third and fourth quarters of 2001 were US$7.2 billion and US$7.3 billion, respectively.

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